Property News - October 2010
Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.
It has been a remarkable period for global housing markets. Prices have boomed, crashed and, in some markets, boomed again – all in the space of five years. To understand the reasons for the latest upturn in this rollercoaster ride we would recommend reading the below article: “International Property – Global Residential Market Forecast”, courtesy of Knight Frank.
As our featured development of the month we have focused on an elite property situated in prime La Lucia Ridge. Overlooking the Oppenheimer estate and with exceptional finishes and sea views, this newly renovated mansion represents the best value money can buy.
It has been a remarkable period for global housing markets. Prices have boomed, crashed and, in some markets, boomed again – all in the space of five years. To understand the reasons for the latest upturn in this rollercoaster ride we need to step back and briefly examine the reaction to the recent crash.
The South African Reserve Bank’s Monetary Policy Committee (MPC) lowered the key monetary policy interest rate – the repo rate – by 50 basis points to 6%. As a result, Absa announced that its lending rates to the public, i.e. prime and variable mortgage rates, will be cut by the same magnitude to 9,5%, effective from 10 September 2010.
Based on data released by the South African Reserve Bank, the total value of outstanding mortgage balances at monetary institutions, which includes both commercial and residential mortgage loans, accelerated by 4,8% year-on-year (y/y) in August 2010 after growing by 4% y/y in the preceding month.
When buying a property with a view to renting it out, it is important to know the market and the mortgage that you’re going for. The buy-to-let market has also become increasingly popular particularly in the larger cities. Renting out the property assists you in paying off the mortgage, while the property steadily increases in value.
Second home developments have been one of the brightest spots in the UK new-build market through the recession and now into the recovery, according to Knight Frank.